Article 43

 

Sunday, July 17, 2022

Worthless Minimum Wage

image: keep them poor

The value of the federal minimum wage is at its lowest point in 66 years

By David Cooper, Sebastion Martizez Hickey, and Ben Zipperer
Economic Policy Institute
July 14, 2022

The value of the federal minimum wage has reached its lowest point in 66 years, according to an EPI analysis of recently released Consumer Price Index (CPI) data. Accounting for price increases in June, the current federal minimum wage of $7.25 per hour is now worth less than at any point since February 1956. At that time, the federal minimum wage was 75 cents per hour, or $7.19 in June 2022 dollars.

Last July marked the longest PERIOD without a minimum wage increase since Congress established the federal minimum wage in 1938, and continued inaction on the federal minimum wage over the past year has only further eroded the minimum wages value. As shown in Figure A, a worker paid the current $7.25 federal minimum wage earns 27.4% less in inflation-adjusted terms than what their counterpart was paid in July 2009 when the minimum wage was last increased, and 40.2% less than a minimum wage worker in February 1968, the historical high point of the minimum wage’s value.

The minimum wage increases of the late 1960s expanded the coverage of the minimum wage to include industries like agriculture, nursing homes, restaurants, and other service industries. The earlier exemption of these industries from the federal minimum wage disproportionately excluded Black workers from this important labor protection. The application of the minimum wage to these industries RAISED workers incomes and directly REDUCED Black-white earnings inequality. Congress’s failure to raise the minimum on a regular basis in the interim, however, has eroded the value of the federal minimum wage and worsened racial earnings gaps.

After the longest period in history without an increase, the federal minimum wage today is worth 27% less than 13 years ago - and 40% less than in 1968.

Real value of the minimum wage (adjusted for inflation)

Figure A

image: minimum wage chart

Note: All values in June 2022 dollars, adjusted using the CPI-U in 2022 chained to the CPI-U-RS (19782021) and CPI-U-X1 (1967֖1977) and CPI-U (1966 and before).

Source: Fair Labor Standards Act and amendments.

As Congressional inaction on the minimum wage continues, 30 STATES AND NEARLY 50 CITIES AND COUNTIES have enacted higher minimum wages. This includes 12 states and the District of Columbia that have adopted minimum wages of $15 or higher. Most recently, Hawaii lawmakers ELECTED TO RAISE THEIR MINIMUM WAGE TO $18 by 2028, and policymakers in New York are CONSIDERING A PROPOSAL TO RAISE THE MINIMUM WGE UPWARDS TO $20 AN HOUR IN NEW YORK CITY, with minimum wages a few dollars lower throughout the rest of the state.

A national $15 minimum wage would raise the incomes of TENS OF MILLIONS of workers, including servers in restaurants, grocery store employees, and essential health care workers - as many as 2 million DIRECT CARE WORKERS who provide long-term services and supports would benefit from a $15 minimum wage in 2025. Although the Biden-Harris administration recently RAISED the minimum wage to $15 per hour for federal contractors, it is past time to raise the minimum wage for all workers.

SOURCE

Posted by Elvis on 07/17/22 •
Section Dying America
View (0) comment(s) or add a new one
Printable viewLink to this article
Home
Page 1 of 1 pages

Statistics

Total page hits 12003118
Page rendered in 0.5412 seconds
41 queries executed
Debug mode is off
Total Entries: 3445
Total Comments: 339
Most Recent Entry: 10/05/2022 10:32 am
Most Recent Comment on: 09/26/2021 05:03 pm
Total Logged in members: 0
Total guests: 7
Total anonymous users: 0
The most visitors ever was 172 on 12/25/2019 07:40 am


Email Us

Home

Members:
Login | Register
Resumes | Members

In memory of the layed off workers of AT&T

Today's Diversion

People will believe anything if you whisper it. - The Whisper Rule

Search


Advanced Search

Sections

Calendar

October 2022
S M T W T F S
            1
2 3 4 5 6 7 8
9 10 11 12 13 14 15
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30 31          

Must Read

Most recent entries

RSS Feeds

CNN Top Stories

ARS Technica

External Links

Elvis Favorites

BLS and FRED Pages

Reference

Other Links

All Posts

Archives

RSS


Creative Commons License


Support Bloggers' Rights